Royal Unibrew shares are higher Tuesday, as the Dutch beverage firm reported record first half earnings. The firm also increased its 2018 full-year outlook for the third time amid a supportive backdrop for the brewer’s operations.
By 1205 BST, Royal Unibrew shares were 4.92% higher at DKK565.50. The stock has been steady-to-a-little lower in recent weeks.
Royal Unibrew H1 earnings
Royal Unibrew published its H1 earnings report Monday, which showed that the Dutch beverage firm achieved pre-tax earnings of DKK641 million, up from DKK502 million during the same period a year earlier.
“The higher earnings are substantially due to the extraordinarily good weather in Northern Europe in May and June, and earnings were driven by all segments,” Royal Unibrew said in a press release.
“It is estimated that the extraordinarily good weather for the entire summer, including Q3 has increased EBITDA by approximately DKK 70-90 million,” it added.
The Dutch brewer has made four purchases so far in 2018, only one of which still requires approval. While those acquisitions may have been expected to weigh on the company’s performance, that appears not to have been the case.
Specifically, Royal Unibrew said that the speedier integration of recent purchase, Terme di Crodo, has also supported the stellar earnings for the first six months of 2018.
The Dutch beverage businesses positive H1 performance, coupled with a supportive backdrop has led the firm to once again increase its full year 2018 outlook.
“Due to continued extraordinarily good weather in Q3 until mid-August, the outlook announced in July 2018 for net revenue, EBITDA and EBIT is increased,” the Dutch business said.
Royal Unibrew now expects the following:
- Full year net revenue of DKK 7,000-7,200 million, up from its previous estimate of DKK 6,900-7,100 million.
- Full year EBITDA of DKK 1,625-1,675 million, compared with an outlook of DKK 1,560-1,635 million, previously.
- Full year EBIT of DKK 1,275-1,325 million, an increase from the former forecast of DKK 1,200-1,275 million.